Cabinet of Ministers approved amendments to the State Budget following the EU loan: how much will be allocated to security and defense

The Cabinet of Ministers has approved amendments to the State Budget following the EU's announcement regarding the allocation of a 90 billion euro loan. Overall, state budget revenues will increase by more than 2.2 trillion hryvnias. This was reported by Prime Minister Yulia Svyrydenko, according to UNN. 

The government has prepared amendments to the 2026 State Budget to strengthen the security and defense sector. This became possible thanks to the approval of a European Union loan amounting to 90 billion euros for 2026–2027. This year, we expect 45 billion euros in support, of which 31.8 billion euros are for state defense and security, and another 13.2 billion euros are to cover the budget deficit. The first tranche is expected as early as June. Overall, state budget revenues will increase by more than 2.2 trillion hryvnias — primarily due to international support and additional revenues within the framework of the Ukraine Plan implementation 

According to her, an additional 1.56 trillion hryvnias will be directed to the security and defense sector, including: 

• 174.3 billion hryvnias - for the financial support of military personnel;
• 1.37 trillion hryvnias - for the development of weapons and military equipment;
• 14.6 billion hryvnias - a reserve for the security and defense sector.

Separately, we are providing additional resources for the development of the Ukrainian defense industry, modernization of equipment, and increasing the production of our own weapons 

According to her, 40 billion hryvnias will go towards the implementation of Comprehensive Resilience Plans for regions and communities. These are resources for preparation for the autumn-winter period, energy protection, and ensuring the stable operation of critical infrastructure.

Another 40 billion hryvnias will be added to the reserve fund for rapid response to wartime challenges.

Addition

As reported by the Chair of the Budget Committee, Roksolana Pidlasa, budget expenditures will increase by 1.64 trillion hryvnias, mainly due to the EU loan. 

1.56 trillion hryvnias for the national security and defense sector, of which:

• +1.397 trillion hryvnias for increasing the defense capability and security of the state (this is 28.3 billion euros that Ukraine will receive under the EU loan this year for defense needs. These are reflected in a new separate program under the special fund);
• +152.26 billion hryvnias for providing for the Armed Forces of Ukraine (this is primarily financial support/salaries);
• +14.58 billion hryvnias - to replenish the reserve of funds for the security and defense sector (a Ministry of Finance program from which they cover priority needs);
• +3.15 billion hryvnias for the development of the defense industry (special fund resources due to increased revenues from the "military PIT");
• +2.13 billion hryvnias for the State Special Transport Service (under the Ministry of Defense);
• +9.91 billion hryvnias for the National Guard (financial support and weapons);
• +6.79 billion hryvnias for the State Border Guard Service;
• +4.8 billion hryvnias for the State Special Communications Service (for drones);
• +2.47 billion hryvnias for the SBU (primarily financial support);
• +1.83 billion hryvnias for the Main Intelligence Directorate of the Ministry of Defense (financial support and weapons);
• +7.8 million hryvnias for the Foreign Intelligence Service.

The government proposes to allocate +40 billion hryvnias for the implementation of Comprehensive Resilience Plans for regions and individual cities (a new budget program of the Ministry of Regional Development, the distribution of funds for which will be carried out by the Government through its decisions). The government also proposes to increase the Reserve Fund by 40 billion hryvnias 

She added that the revenue part of the budget increases by 2.29 trillion hryvnias due to:

- 1.397 trillion hryvnias - military support within the EU loan (28.3 billion euros);

- 824.25 billion hryvnias - budget support within the EU loan (this is 16.7 billion euros);

- 47.67 billion hryvnias - EU funds within the Ukraine Facility;

- 22.62 billion - additional revenues from PIT and military tax (due to the growth of total expenditures on military salaries).

The government also proposes to direct the military tax to the financial support of the AFU military starting from July 1, 2026. In addition, it is proposed that in 2026, revenues from export duties on military and dual-use goods be directed to the purchase and production of weapons and the financial support of AFU military personnel. The vote in the Rada is expected on May 25 

Reminder 

The Verkhovna Rada Committee on Budget Issues recommended that parliament adopt in full draft law No. 15167, which provides for the crediting of the military tax to a special fund of the State Budget, which will be directed to military salaries.